Organizations that rely heavily on vendors but don’t have sufficient visibility into their vendor networks are exposing themselves to high risks.
Vendor Risk Management (VRM) is the process of ensuring that the use of service providers including but not limited to IT suppliers do not create an unacceptable potential for business disruption or a negative impact on business performance.
Vendor risk management deals with the management and planning of third-party products and services. This ensures that the use of third-party products, IT suppliers and service providers does not result in a potential business disruption or in any negative impact on business performance.
A strong Vendor Risk Management program helps companies anticipate inherent risks rather than simply reacting to adverse situations and incidents after they occur.
Ineffective Vendor Monitoring Processes
The complexity of vendor relationships increases as the vendor base grows in any corporation. Monitoring these relationships becomes challenging when companies use undefined, fragmented, and decentralized vendor monitoring systems which are not only time-intensive, but also difficult to scale. Often, companies fail to monitor their vendors consistently due to a lack of proper resources, unstructured processes, and undefined metrics.
Traditional Approach toward Vendor Risk Assessments
Organizations often use cumbersome manual tools such as documents or spreadsheets to create, distribute, and manage vendor surveys. These tools do not offer real-time threat intelligence, and provide only a static view of vendor risk.
Lack of Policy Awareness and Training
A number of companies fail to track vendor risks in line with their internal policies and certifications. This can result in operational issues. Additionally, if company policies are not communicated effectively to vendors, there may be a gap in expectations between both parties, thereby impacting a vendor’s ability to assure compliance.
While this issue remains for many companies, smart companies ARE getting ahead of this problem by finding a partner with the tools and expertise to manage the devil in their details as it relates to local, regional even national service relate costs. A partner they can trust, that will do the benchmark analysis on every single vendor, actively renegotiate for lower pricing and better T&Cs, ensure bills get paid on time and services aren’t shut off, and ultimately resulting in elimination of fat and more strategic use of budgets without losing strong deliverables from vendors.
This IS what our team at LIMITLESS does All Day and Every Day. We take this burden off of your people – so they can focus on the bigger problems at hand. We partner with each member of your team so they feel confident they can maintain the overall control, won’t lose the vendor relationships they value but, WILL gain the critical support they need to make better decisions. The support we provide allows your team to focus on the important work of ensuring occupancy rates, delivering exceptional resident experiences, and grow their business and market shares.
Through our fully managed on-line software LIMITLESS Vendor Management Solutions (VMS) gives organizations absolute visibility into their vendors: managing contracts, compliances, risks and spends. VMS enables businesses to better control expenses, drive service excellence and mitigate risks associated with vendors. At LIMITLESS we have a powerful process improving overall bottom line. Our customizable system fits the needs of businesses on an individual basis. LIMITLESS performs a strategic audit and optimization process to ensure that your vendors and provider services are accurate and at the lowest rate obtainable.
Don’t hesitate to stop the waste, and increase your profits now…and when it comes time to sell.
Contact LIMITLESS today for a FREE CONSULTATION to discover how to get control of your unmanaged spend and reduce expenses in your business.